CONCEALMENT. The improper sup pression of any fact or circumstance by one of the parties to a contract from the other, which in justice ought to be known.
The omission by an applicant for insu rance preliminarily to state facts known to him, or which he is bound to know, material to the risk proposed to be insured against, or omission to state truly the facts expressly in quired about by the underwriters to whom application for insurance is made, whether the same are or are not material to the risk.
Concealment when fraudulent avoids the contract, or renders the party using it liable for the damage arising in consequence thereof. 7 Metc. Mass. 252 ; 16 Me. 30; 2 Ill. 344; 3 Barnew. & C. 605 ; 10 Clark & F. Hou. L. 934. But it must have been of such facts as the party is bound to communicate. 3 Eng. L. & Eq. 17 ; 3 Conn. 413 ; 5 Ala. N. s. 596 ;
1 Yeates, Penn. 307 ; 5 Penn. St. 467 ; 8 N. H. 463 ; 1 Dev. No. C. 351 ; 18 Johns. N. Y. 403 ; 6 Humphr. Tenn. 36. See REPRESENTA TION; MISREPRESENTATION. A concealment of extrinsic facts is not, in general; fraudulent, although peculiarly within the knowledge of the party possessing them. 2 Wheat. 195 ; 1 Baldw. C. C. 331 ; 14 Barb. N. Y. 72 ; 2 Ala. N. s. 181. But see 1 Miss. 72 ; 1 Swan, Tenn. 54 ; 4 M'Cord, So. C. 169. And the rule against the concealment of latent defects is stricter in the case of personal than of real property. 6 Woodb. & M. C. C. 358; 3 Campb. 508 ; 3 Term, 759.
Where there is confidence reposed, conceal ment becomes more fraudulent. 9 Barnew. & C. 577; 4 Mete. Mass. 381. See, generally, 2 Kent, Comm. 482; MISREPRESENTATION ; RE PRESENTATION.